Ethereum holders keep accumulating Ether ahead of ETF and new yield opportunities

Bitcoin long-term holders shed their holdings while Ethereum holders continue accumulating, per IntoTheBlock data.
Ethereum holders prepare for new yield opportunities and the upcoming ETFs, likely driving the divergence between BTC and ETH.
BTC and ETH wiped out nearly 2% of its value in the past seven days on Binance.

Ethereum’s (ETH) long-term holders have continued scooping up Ether while Bitcoin’s long-term holders shed their holdings. New yield opportunities in Ether, and the upcoming ETF are likely behind the divergence in the behavior of the long-term holders of BTC and ETH.

Ethereum’s long-term holders refrain from selling

Data from crypto intelligence tracker IntoTheBlock shows the difference in behavior of long-term holders of the two largest cryptocurrencies in the ecosystem. Crypto total market capitalization has recovered from the recent drop, with Bitcoin holders taking profits on their holdings while Ethereum holders resist selling.

Typically, when long-term holders exit their positions and take profits, it is a sign that they expect price to drop in the future. This applies to Bitcoin since long-term holders took profits and shed their holdings.

In the case of Ether, long-term holder behavior suggests that they believe in the potential of gains in the altcoin.

Long-term holder behavior

The upcoming Ethereum ETF and the yield from staking and re-staking opportunities are likely catalysts driving the thesis of potential gains.

Ethereum ETF flows could be 20% of Bitcoin: Expert opinion

Eric Balchunas, Senior ETF analyst at Bloomberg says that Ether Spot ETF flows/ volume relative to Spot Bitcoin could be 20%, to label the launch as successful by “normal ETF standards.”

10 may be a bit much.. but I'd at least divide by 5 when it comes to expectations around the Ether spot ETFs re flows/volume/media/everything relative to spot bitcoin ETFs. That said, grabbing 20% of what they got would be huge win/successful launch by normal ETF standards. https://t.co/QDenr3jY2B
— Eric Balchunas (@EricBalchunas) May 29, 2024

Balchunas explains his stance with a visual comparing Ether’s share vs Bitcoins in different geographies.

Bloomberg Intelligence comparison between Ether and Bitcoin Assets

Balchunas explains that in these investment products there is an “apples to apples comparison” and the poor showing of Ether futures is a big part of his calculation. The final prediction is a 20% share of Bitcoin’s flows and volume.

At the time of writing, Bitcoin price sustained above $64,000 while Ether inched closer to $3,500, on Binance.

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